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What is a correction in cryptocurrency?

 What is a correction?

What is a correction?


It is an important term in the field of trading, the correction is the price decline that we observe on the chart after every momentum in the trend, it is also called (rebound) and it occurs at every oversold or overbought and it is usually temporary and then the price returns again to the direction in which it is going . 


But its occurrence must be repeated because the price does not always go in a fixed direction. To measure the depth of the correction, traders usually use the technique of technical analysis that depends on the Fibonacci levels, there is an upward, sideways and downward correction.


Types of correction in trading:


Short-term correction: is the price retracing and rebounding from the direction in which it is traveling for a short period ranging from minutes to hours during one day.


Medium-term correction: It is the price’s retreat from the general trend for a period ranging from several hours to several days during one week.


Long-term correction: It is the longest type of retracement that the price can go through, where the price retraces the general trend and continues for several days and weeks before returning again to the general trend it was taking.


How to trade the correction?

There are a lot of methods and strategies that explain how to trade on the correction and reap some gains from the temporary rebound movement of the price that the daily trader Scalper uses. Which we adopt as warehouses for the medium and long term...


Note:

Waiting for the strong correction (going down) for a longer period in currencies that are still in their infancy may be wrong because the currency may continue to rise and the tops that we see in the beginnings will become bottoms in the future. On the other hand, waiting for strong corrections in currencies that have reached their turn is a natural and necessary thing...


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#correction #cryptocurrency #bitcoin #ethereum #binos #trading #crypto

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